Refer to the Table

question 22

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Money Market Mutual Fund Balances Held by Businesses } & \\\hline \text { Money Market Mutual Fund Balances Held by individuals } & \$ 100 \\\hline \text { Currency in Banks } & 220 \\\hline \text { Currency in Circulation } & 10 \\\hline \text { Savings Deposits, Including Money Market Deposit Accounts } & 40 \\\hline \text { Large-denominated ( } \$ 100,000 \text { or more) Time Deposits } & 50 \\\hline \text { Small-denominated (\$100,000 or less) Time Deposits } & 180 \\\hline \text { Checkable Deposits } & 70 \\\hline\end{array}$$ Refer to the table. Money supply M1 for this economy is

• A) $110.
• B) $40.
• C) $70.
• D) $120.

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Definitions:

Deposit

A sum of money placed in a bank account or paid as the first installment on a purchase, establishing a right to the full ownership or to secure a contract.

Birthday Money

A non-formal term usually referring to money received as a gift on one's birthday.

Compounded Monthly

A method where interest is added to the principal sum at the end of each month, with each subsequent calculation including interest on interest.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage.